Mortgage financier Fannie Mae on Monday reported lower first-quarter profit as investments it uses to protect against interest rate exposure lost value.
Fannie Mae reported net income of $1.9 billion, or $1.90 per share, compared with $1.94 billion, or $1.93 per share, a year earlier.
The Washington company said operating earnings, which exclude accounting of market value changes of its interest rate derivatives, rose to $2.02 billion, or $2.03 per share, from $1.85 billion, or $1.84 per share, a year earlier.
On that basis, analysts on average expected profit of $1.91 per share, according to Reuters Research, a unit of Reuters Group Plc.
Fannie Mae and Freddie Mac, which were created by Congress to increase home ownership, buy home loans from lenders to free up money so they can make more loans.
